The FBI has accused North Korean-linked hackers of carrying out one of the biggest crypto theft recorded, stealing approximately $1.5 billion in Ethereum from Dubai-based exchange Bybit.
North Korean Hackers Target Bybit
Bybit, one of the world’s largest cryptocurrency exchanges, was targeted earlier this month by hackers associated with the Lazarus Group and TraderTraitor. These cybercriminals allegedly used malware-laced cryptocurrency trading applications to facilitate the massive theft, according to the FBI.
In a public announcement on Wednesday, the FBI confirmed its belief that North Korean-backed hackers were behind the heist. The agency warned that the stolen digital assets were rapidly being converted into Bitcoin and dispersed across multiple blockchains, making it difficult to track and recover the funds.
North Korea’s Cryptocurrency Crimes
While North Korean officials have not acknowledged the allegations, this theft adds to the estimated $1.2 billion in digital assets stolen by the regime over the past five years. According to South Korea’s spy agency, these cybercrimes provide a crucial source of foreign currency for North Korea’s struggling economy and nuclear weapons program, which remains under heavy international sanctions.
A U.N. panel is also investigating 58 cyberattacks attributed to North Korea between 2017 and 2023, which reportedly funded the country’s development of weapons of mass destruction, amounting to an estimated $3 billion in stolen assets.
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Bybit Responds to the Hack
Bybit CEO Ben Zhou acknowledged the FBI’s findings in a post on X, linking to a website offering $140 million in bounties for tracking and freezing the stolen assets.
The attack occurred when a routine transfer of Ethereum from Bybit’s offline “cold” wallet was manipulated by the hackers, who then transferred the funds to an unidentified address. Blockchain analytics firm Certik has described this incident as the largest breach in blockchain transaction history.
Impact on Crypto Markets
The news of the theft has sent shockwaves through the cryptocurrency market, contributing to a decline in crypto prices. Despite initial boosts from the re-election of former U.S. President Donald Trump, Bitcoin has dropped from its all-time high of over $100,000 last month to around $82,000 per coin. Investors remain wary as security concerns over digital assets grow.
